{"product_id":"9781601982728","title":"Equity Valuation","description":"Equity Valuation reviews and critically examines the standard approach to equity valuation using a constant risk-adjusted cost of capital and develops a new valuation approach discounting risk-adjusted fundamentals using nominal zero-coupon interest rates. Equity Valuation is organized as follows. Chapter 2 (Risk-adjusted Discount Rates) reviews standard valuation models based on risk-adjusted discount rates. Chapter 3 (Multi-period Asset Pricing Theory and Accounting Relations) examines key results from multi-period asset pricing theory in discrete-time, and shows how equity valuation models can equivalently be based on free cash flows or accrual accounting numbers. Based on these results, the authors derive an accounting-based multi-period equity valuation model presented in Chapter 4 (An Accounting-based Multi-period Equity Valuation Model) with equilibrium risk-adjustments determined by prices of aggregate consumption claims. Chapter 5 (Equity Valuation with HARA Utility) includes a general equilibrium analysis of a setting in which the investors have HARA utility, and aggregate consumption and residual operating income are jointly normally distributed. A set of appendices follows including Appendix B that extends the setting to preferences with external habit formation (which recently has gained popularity in asset pricing theory), and Appendix C, which discusses the relationship between risk-adjusted expected cash flows and certainty equivalents.","brand":"Now Publishers","offers":[{"title":"Default Title","offer_id":47031343087856,"sku":"9781601982728","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9781601982728_p0.jpg?v=1763825244","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9781601982728","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}